swiss-re-case-study

Guiding questions:

  1. Describe how catastrophe bonds work.
  2. Why would an insurer consider issuing a catastrophe bond?
  3. What risks should an issuer/sponsor think about when issuing a catastrophe bond?
  4. How should Swiss Re think about establishing triggers to mitigate moral hazard?
  5. Who would consider investing in a catastrophe bond? Why?
  6. Which types of risk are particularly well-suited for catastrophe bonds? Which risks are not good candidates for securitization? Why?
  7. Why would reinsurance prices spike after the September 11 events?
  8. How should Swiss Re market its bonds to investors?